Income Tax Dept withheld Rs 1.5 crore refund citing Form 26AS TDS mismatch - how taxpayer approached High Court and won the case

Not getting an income tax refund due to TDS mismatch in Form 26AS? A new Allahabad High Court ruling may work in your favour. The Allahabad High Court has issued a ruling on October 8, 2025, clearly stating that tax authorities should not withhold legitimate refunds from taxpayers based on an Income Tax Assessing Officer's (AO) discretion. According to an ET report, the court clarified that Assessing Officers must accept tax deduction at source (TDS) documentation provided by taxpayers, rather than insisting on exact matches with Form 26AS figures. The court emphasised that it is the AO's responsibility to verify the amounts using Form 16A evidence submitted by taxpayers. The ruling stemmed from a case involving TDS of Rs 1.5 crore deducted from a taxpayer's payments. The amount was